You can come across different situations in your life where the concepts from capital budgeting will help you in evaluating the situation and making calculated dedsions. Consider the following situation: The following table contains five definitions or concepts. Identify the term that best corresponds to the concept on definition given. Concept or Definition Term The cost of nat choosing anather mutually exclusive project by accepting a particular project The effects on other parts of the firm The cash flows that the asset or project is expected to generate over its life cost that has been incurred and may be related to a project but should nat be part of the dedision to accept or rejedt a project The specific cash flows that should be considered in a capital budgeting decision Marston Manufacturing Co. owns a warehouse that it is not currently using. It could sell the warehouse for $30D,000 or use the warehouse in a new project. Should Marston Manufacturing Co. include the value of the warehouse as part of the initial investment in the new project? O Yes, because the firm could sell the warehouse if it didn't use it for the new projedt. O No, because the company will still be able to sell the warehouse once the project is complete O No, because the cost of the warehouse is a sunk cost. A paper manufacturer has built a plant that meets all govemment-mandated environmental regulations, but the plant still produces an unpleasant ador when it is being operated. Many residents in the area dislike the paper mill because of these unpleasant adors. This is an example of extemality